SK Hynix Gains Most in 3 Weeks on Earnings Outlook: Seoul Mover

By Saeromi Shin -
Dec 6, 2012

SK Hynix Inc. (000660), the world’s second-
largest maker of computer memory chips, jumped the most in more
than three weeks in Seoul trading on speculation quarterly
earnings will exceed analysts’ estimates.

The stock climbed 4 percent to 25,850 won as of 10:45 a.m.
on the Korea Exchange, poised for its steepest gain since Nov.
14. The benchmark Kospi index added 0.4 percent.

Fourth-quarter operating profit may be 202 billion won
($186 million), compared with a consensus estimate of 147
billion won, Taurus Investment & Securities Co. said. The
company posted an operating loss of 15 billion won in the third
quarter.

“Profitability will significantly improve,” helped by
prices of NAND flash chips for mobile devices and cost
reductions, Kim Hyung Sik, a Seoul-based analyst at Taurus
Investment, wrote in a report today. He raised the share-price
estimate by 6.5 percent to 33,000 won and maintained a buy
recommendation.

Samsung and Apple Inc. (AAPL) are in the midst of patent-
infringement lawsuits around the world. Samsung is one of
Apple’s biggest component suppliers and its chief rival in the
smartphone and tablet markets.